Monthly Archive for October, 2021

Why It’s Time To Get Strict With Your Payment Terms

A common problem that many small business owners and freelancers have is payment. From late payments to not being paid at all, many business owners will struggle to keep their business afloat while juggling the uncertainty of payment.

If you’ve always been a bit lax with your payments, it’s time to get tough. Getting your finances in order is crucial for securing your business’ future, and your own finances too.

Take the tough approach with your payments to do what’s right for you and your business.

Image Credit: Unsplash under Creative Commons

You deserve to be paid for your hard work

When you work for yourself, the way other businesses can see you can be unsettling. Some may try to undervalue your worth or use the age of your business against you. There are a lot of myths that keep freelancers from getting paid what they’re worth, but that doesn’t mean that you should buy into them.

Be strict with your payment terms and what you charge, you may find that most people are just pushing their luck and will accept your pricing. 

Maintaining security is important

Having secure payment systems in place is important for your business. This not only protects your finances but protects your customers and clients too. There are a lot of different types of secure payment, and you should explore the ones that are right for you. Weighing up whether to use ACH vs EFT is one way to help you decide on a secure and reliable payment process. Review your security processes to help ensure all your data is protected from potential threats.

The future is uncertain

The global pandemic has been particularly tough on the self-employed. It’s estimated that 46.6% of self-employed people lost their jobs during the coronavirus crisis. There are many reasons for this, but with so much ongoing uncertainty, you need to cover yourself. Always invoice on time and be clear about your payment terms. You may even want to take a retainer for your services to cover you against some loss if a problem occurs. 

Your business depends on it

When you’re self-employed, your business can be your only source of income. One of the mistakes small businesses make is that they fail to plan ahead, and that can include your finances. Managing cash flow is crucial for those who are self-employed, as a few missed payment deadlines can be all it takes to drive your business into the red. Taking a tough stance on your invoicing can help you maintain effective cash flow and ensure you’re taken seriously as a small business owner.

Running your own business or being self-employed means you won’t have the financial safety net that larger organizations have. Protecting your business’ finances should be a priority, and you should never accept more than you’re worth. Get tough with your payment terms and give your business the financial security it needs to thrive.

Reducing Recruitment Costs

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Right now, due to the global pandemic and all of the issues that have brought, many businesses are looking to save money wherever they can. One area that is often overlooked to this end is recruitment. 

Hiring new people can be a big expense for any business, but of course, it is often necessary, so it is always worth looking at ways that savings can be made, which is exactly what I’ve done below…

Outsource instead

An obvious way to cut down on recruitment costs is to think about whether you really need to hire someone for the job or not. These days, you can outsource everything from financial accounting services to customer support, and it is often cheaper to do so because you don’t have to pay employee tax and benefits on top of everything else, so whenever you’re thinking of hiring someone new, first things about whether you really need to or if it would be cheaper to engage an outsourced solution instead.

Seek referrals

Advertising for employees can be very expensive what with placing the actual ad itself and potentially paying someone to write an appealing job spec/ad in itself, So, one thing any business can do to cut down on this particular cost of recruitment is to first seek referrals before advertising the position at all. 

Ask your current employees, clients, and associates if they know anyone who would be interested, and qualified for the job and interview them first. Chances are your employees will know other competent people in the industry, so if you can have them refer people to you, you can cut many of the costs traditionally associated with hiring new employees and get access to the talent you need.

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Use social media

Social media is filled with people looking for work, so why not leverage that to your advantage? You can post your job openings on your own social media pages without paying a single penny to anyone, and providing you do a good job and put the right post together to attract as many likes and shares as possible, it will practically do the job of spreading the word itself. Of course, you’ll still need to interview, but at least you won’t need to spend a lot of time and money dealing with various recruitment agencies and job sites, nor will you need to worry about paying their fees.

Use an applicant tracking system 

Application tracking systems like CIPHR iRecruit will save you countless time and money by streamlining your processes and automatically tracking applications. That means you’ll need fewer humans on the job, so you should be able to save a lot of money in terms of HR resources.

Look after your employees

Of course, the best way to save money on recruitment is to lower your need for it at all. By looking after your employees and ensuring your workplace is a happy one, you will have a better staff retention rate and less need to recruit, which means you will save way more time and money as a result.

Recruitment doesn’t have to be so expensive, as you can see.

Bad Habits That Could Ruin Your Business

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When you are running your own business, it is important that you remain as professional as you at all times. If you drop the ball even for one second, it could have negative consequences for your business. Bad habits, in particular, can bring your business down if you let them, and since I’m sure you don’t want that to happen, let’s take a look at some of the bad habits that are most likely to ruin your business…

Procrastination

If you are a procrastinator, you will constantly be putting off important jobs like filing the accounts or calling up the suppliers to arrange a better deal in favor of less important tasks like answering routine emails and organizing your filing cabinet. This is very unlikely to help you grow a successful business going forward, so if you are a classic procrastinator, it may be time to start developing strategies to help you get things done.

Technophobia

If you are running a business in the 21st Century, then you need to be able to use technology like this integrated hospital contract management software and this accounting software with ease. If you cannot and do not want to use technology then your business will be fr less accurate and efficient than it could be and your company will undoubtedly suffer, and be beaten by the competition, as a result. Even if it means taking a computer class, get to grips with the latest tech and let your business thrive. 

Laziness

It almost goes without saying that if you are lazy, you are unlikely to build a successful business. When you look at the most successful entrepreneurs from Richard Branson to Elon Musk, one thing they all have in common is drive. If you’re lazy, you’ll miss deadlines, put off wining and dining clients, do sloppy work at the last minute and ultimately put clients off working with you again in the future. Laziness is simply not a habit you can afford to have.

Bad manners

If you have bad manners and a lack of social skills, whether you realize it or not, you will turn people off. They will come to consider you as rude and that is the last thing you want to happen because, in order to be successful in business, you need to be able to network effectively and build meaningful connections with clients, employees, and other prominent business people. These days you can take classes in etiquette and social skills, particularly for business, so there is no excuse not to behave appropriately in any given situation even if it does not always come naturally to you.

Arrogance

If you are arrogant in business, you will ignore suggestions from employees who may have a lot to offer; you will ignore bad refires from customers and you will not be able to prevent yourself from micromanaging every aspect of your business. Basically, you will run your business into the ground while thinking all is rosy and that is not a good position to be in.

How To Rebuild Your Small Business After COVID-19

While the short-term prognosis for small companies differs significantly by sector, it’s critical to anticipate what recovery mode will look like once the economy returns to normalcy – or creates a new normal. Having a plan in place for following COVID-19 may help you be ready to hit the ground running and rebuild. If you’re not sure what your coronavirus escape strategy should be, this article may help you get back on track.

Photo by Tim Mossholder from Pexels

Assess The Financial Damage 

The first step in establishing a COVID-19 rebuilding strategy is assessing the extent to which your small business has been impacted.

There are many layers to examine, starting with hard numbers. It’s an excellent time to update your accounting records, such as cash flow or profit and loss statements, if you haven’t done so lately. You may then compare them to prior year’s statistics to see how much your business has decreased. And it’s possible that the damage isn’t as bad as you think.

Aside from the basic statistics related to sales, earnings, and cash flow, examine how your company has been impacted in other ways. For example, if you’ve had to lay off some or all of your workers, you’ll need to account for this in your rebuilding strategy. If you have reduced your advertising and marketing budget, or if some of your clients have moved to rivals, you must account for these factors while identifying financial resources to assist you in recovering.

Revamp Your Budget 

You may have to spend money in the aftermath of the COVID-19 epidemic before you can earn money. For example, you might need to spend money on recruiting and training new workers, as well as rehiring those who were laid off. Inventory may need to be bought, and your advertising budget may need to be increased again to begin generating new buzz.

You should have a solid grasp of what you need to plan for and what you can remove as part of your coronavirus regeneration to make the most of the income you do have. The goal is to reduce financial waste and make your operational budget as tight as possible so that when the chance to invest in growth presents itself, you can seize it. Using OKR training to understand more about your goals is crucial, as this will help you see exactly which direction to go in. 

Rewrite Your Business Plan 

Your company model may have functioned very well before COVID-19, but getting out of it may need some fine-tuning. You might need to think about how your company can pivot to adapt to a new normal. For example, if you previously depended on foot traffic to a physical store for sales, you might now need to consider a digital expansion to meet the increasing number of individuals who shop from home.

Analyzing how the coronavirus epidemic has impacted your whole business is also beneficial. When examining your rivals and the industry as a whole, pay attention to trends and concentrate on identifying opportunities. Finding a gap or need that your company can serve that has been overlooked up until now may be important to recovering and growing your client base in the future.