Stepping Stones to Business Success

# 1 Challenges

BUSINESS IMPROVEMENT

A challenge is an opportunity in disguise!

What a powerful statement and if you can live this philosophy, there will be no stopping you. Challenges test us, they also test our competitors who may quit because it is too hard. Challenges may force us to dig deeper or find a better way of doing something … which ultimately benefits and strengthens our business. I have always had a personal motto “What doesn’t kill me only makes me stronger. Some days I feel like Arnold Schwarzenegger!” The same applies in business. Challenges are sent to us every day and it is how we address those challenges that make the difference. Do we quit? Do we whinge? Do we back down? Do we just decide it is all too hard and throw our arms up in the air?

We all know that opportunities are things to be grabbed, with both hands and held tightly. Every opportunity we are presented gives us the chance to do something wonderful with our business.

So, think of challenges as opportunities and accept them. You may not welcome them, but you definitely cannot shy away from them. Looking back in my own business, I can now see that every challenge I have accepted has resulted in a business improvement. Whether it was being time challenged and putting on my first team member Kate – I now have over a dozen wonderful team members – or being challenged by our computer system and discovering that networking was the solution. Take your challenges and use them as opportunities to do bigger and better things with your business.

# 2 Debt Collection is Critical

BOOKKEEPING & ACCOUNTING

In the 2008 CPA Small Business Survey, it was found that a whopping 44% of small businesses do not produce a debtors report!! And just as bad, 25% of small businesses never chase up late payments. Interestingly the same survey for 2009 and 2010 still have 25% of small businesses never chasing payment. A healthy and smart business will produce debtor (receivable) reports every week and chase those outstanding every week. But first, it is important that you invoice promptly, have an Agreement in place and ring every week. When you call (and ring, don’t just email or post out an overdue reminder statement or notice), be sure to note promises etc, so when you call back (and do call back if required) you can quote a promise which will further help you to get the money in. Have a person doing this who is professional and friendly but firm. They do not have to be a “pit bull” but someone who will do the job properly.

Have a process in place, where in the case a promise is not met, or the debtor skilfully avoids your calls, you have a set “Collection Letter”. This letter should be firm although polite. Tell them what they owe and when you want it paid and what the consequence will be if they do not do this – that is, the matter will go to your solicitor or debt collection agency for action and they may be liable for the costs associated with this. Have your process clearly in place so all your staff know what happens next, and when and why and how. Have a designated collection person. Not everyone likes or is able to do this; if you can give it to a person who is quite happy to do this task, all the better, they are likely to have more success than the person who absolutely hates this task. But if at the end of the day the person designated is not fond of collections, be sure to monitor their progress and ensure they are doing the job!

Be flexible. If your client owes $3K perhaps a repayment plan will be workable for them and will start getting that money in for you. Alternatively offering credit card facilities may help debtors pay.

It is my strong belief you need to train your clients and send the message that you are on top of payments. I can remember one client many years ago who said to me “Donna, I only pay you when you scream for it”. So, I began “screaming” much sooner. Your clients will soon learn what you will accept or not and toe the line.

And, yes, you will lose some clients. I have had clients (amazingly usually those who were personal friends) who have been most indignant that I would even ask for payment. How dare I!! Well the fact remains, do you want a client or customer who does not pay for the service or product you have supplied? Those who are indignant at being asked for money should not be so rude as to put you in the position of having to ask. You do not need these clients; let them go to make room for those clients who will (happily) pay for your good service or product.

# 3 Attach Activities to how you will Achieve your Goals

GOALS, PLANS & OBJECTIVES

So you have set your goals. Now is the hard part. How will you achieve those goals? Maybe one of your goals was to save for a deposit on a house? Perhaps the activity to work towards that goal is to put $100 a week aside in a savings account; or better yet, set up an automatic sweep to that savings account. There may be three or four strategies or activities for each of those goals.

So, do you see where I am coming from here? You set your goals and then plan how you will achieve those goals. Think of this like travelling to a destination. You determine where you want to go, and then plan how you will get there. Take this street; turn right at that road, etc.

# 4 Networking is not about ‘Closing the Deal’

NETWORKING

Too often people think that networking is about making a sale today. Networking is about building relationships, which is something we all know, takes time. In marketing, it’s said that someone needs to be exposed to something (such as an advert or flyer) at least four times to have the best affect. A similar concept occurs with networking; people need to get to know you, see you regularly and build up that rapport and trust that’s necessary. Also please remember that it is very foolish to dismiss the person you are speaking with because you figure they won’t need your services. For example, if you run an elite babysitting business and you discover the person in front of you does not have children. Don’t just wind it up and bolt. Perhaps that person has lots of friends or siblings with childcare issues.

#5 Set aside Family Time

KIDS, FAMILY & BUSINESS

When I started out in business I used to work weekends and nights. I absolutely almost never do now. I do not go to evening business networking functions, I rarely make client appointments at night and I don’t work on the computer after dinner. You may have to do this when you start out, but set a deadline for this and communicate that time span with your family. Maybe it is twelve months and then you will cut back. Ensure you keep your promise and do cut back. Now, I just say that I do not work evenings as this is my “family time” and guess what? Most people accept (and respect) this. I start work about 4:30am. So by 4pm in the afternoon my work day is done. I then switch to family mode – homework, chauffeuring to sport, making dinner, doing the washing etc. This is my family and ‘me’ time.