Posted by Eric Hubbs on Mon, Sep 28, 2009 @ 04:34 PM
Presented by Suzanne Atkinson, GBP&B Tax and Business Advisors 
While we would all like to believe Confucius philosopher Mencius' premise that human nature is good, the high number of employee fraud cases disputes his theory. Fraud is no longer rare, it is not just happening to the big companies and it is not masterminded by sophisticated criminals. Most cases involve first time offenders who have been presented with a golden opportunity to "earn" some extra cash.
Fraud is common, the 10/10/80 rule states:
- Ten percent of the population will never steal
- Ten percent of the population will always steal
- Eighty percent of the population will steal when presented with opportunity.
That's ninety percent of the population that you need to protect yourself from!
When fraud happens, we aren't talking about small amounts; the average loss to small businesses is over $185,000, enough to put you out of business.
Very few of these offenders are ever charged or imprisoned.
So, how can you as the business owner prevent fraud?
Don't worry, fraud is easy and inexpensive to prevent!
Simple changes such as screening employees, reviewing your bank statements and having final say on all financial payments will significantly decrease your chances of being affected by fraud. It seems too easy, right? But letting your employees know you are there and watching will deter them from stealing.
Take back control of your finances and take away the golden opportunity for others to leave you devastated.
To download the expanded version of what you can do to protect your business and prevent fraud, please click here.
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Posted by Jennifer Porcher on Wed, Sep 23, 2009 @ 01:01 PM
by Jennifer Porcher
We've all heard the saying "there is no I in team," and yet I see so many managers overwhelmed and taking too much on their own plate, when they could be utilizing their Team to get work done. They may want to show that they can do the job and do it right, or they may be nervous that someone else might mess it up or someone might even do it better. Whatever their reasoning, they need to be taught the meaning of a Team and how to build a lasting one. If you teach the Managers within your organization how to delegate, empower others, and build loyalty, your Team will be much more productive and happier.
Delegate
Delegation is not about balancing out the workload, but an opportunity to bring others up through the organization. It is an opportunity to coach and mentor and to see who is capable and interested in stepping up and handling more. If delegation is done properly, it is one of the easiest ways to develop teamwork and to build stronger relationships among managers and their team members.
Empower Others
It has been my experience that one of the roadblocks to empowering organizations and establishing teams is management's belief that they have to give up control. In reality, control has nothing to do with it. Managers need to identify other leaders within their Team and empower them to make a difference.
Build Loyalty
Employees look for fulfillment in the workplace in many more areas than just compensation. They want to have a future; they want to feel needed. They need to know that their ideas matter and that they are being heard. A recent Society for Human Resource Management survey showed that 80% of employees don't leave a company, they leave a manager. The solution? Build loyalty between managers and their Teams.
Does your Manager act like there's an "I" in team?
Begin with a good assessment. How is your manager interacting with others? Is there loyalty among the team? Are your teams reaching their goals and reaching the right outcomes? A good manager has loyal team members; you will know this by the team's interaction and the department's turnover rate. It will also be evident in the general happiness of team members at work.
Then, explain the rewards they will reap if they embrace their team:
1. Absenteeism is reduced
2. Customer satisfaction improves
3. Decisions are made much more quickly
4. Problems are resolved at the source
5. Tasks are completed in a harmonious manner
6. Morale remains high
Invest in your manager if your manager is worth investing in. The outcomes of the team will be far more rewarding than to keep looking for the next great new hire that will turn it all around. Chances are, that person is with you already; they don't have the training or tools to make it happen.
Posted by Michael Gunther on Fri, Sep 18, 2009 @ 06:22 PM
By Michael Gunther, Founder and President of Collaboration Business Growth Specialists
Financials are the foundation for every business, yet they are often the most ignored aspect. Too many business owners do not understand or even employ basic financial principles in their business - some are afraid of what the numbers might tell them and others have never been taught how to manage their business financials.
Okay, I can hear the yawns already. But what if I told you that there are two basic principles to help you better manage your money and grow your business profitability? Would that give you incentive to pay attention to your financials?
Principle #1: Understand your Gross Profit % (aka Gross Margin)
Understanding this number is a vital step toward creating a financially thriving company. Let me provide an example. Say a business generates $100,000 in revenue and they have $65,000 in Cost of Goods/Services Sold (the total cost of delivering a product or service, including commissions, merchant fees, etc.). This means their Gross Profit is $35,000 ($100,000 - $65,000 = $35,000) and their Gross Profit % is 35% ($35,000 / $100,000 = 35%).
So far, so good. Now, let's show the importance of Gross Profit when making a business decision. Say this business wants to spend $1,000 on a new ad campaign. They just need to increase revenue by $1,000 to cover these costs, right? Not so; based on our example, if they earn $1,000 only 35%, or $350, is Gross Profit and the other 65%, or $650, goes right out the door to deliver the product or service (Cost of Goods/Services Sold). One way to think of it is they have only $35 left for every $100 generated.
To pay for the $1,000 ad campaign, they need to increase revenue by $2,857 ($1,000 / 35%). It's easy to see that if a business doesn't understand this principle they can make financial decisions that are hazardous to their business.
Principle #2 - Manage Your Business with a Cash Flow Statement, not a Profit & Loss Statement
Now let's take a look at why the Cash Flow Statement is so important. Some owners make the big mistake of thinking the Net Profit number on their Profit & Loss Statement is what they have in cash to spend. Once again, this is not so. The typical Profit & Loss Statement does not reflect principal payments you make on any loans you are servicing nor does it reflect any draws that you take instead of salary through a payroll check.
If you look at your Profit & Loss profit position to manage your cash flow (instead of your Cash Flow Statement), you will struggle financially - even when your Profit & Loss Statement states a profit. You'll be spending cash that you don't actually have.
Bottom Line
Business owners who understand and apply these two principles have more control over their business financials and business strategies, allowing for better financial decisions and ultimately a profitable, thriving business.
Michael Gunther is Founder and President of Collaboration, LLC, a team of highly skilled business professionals who are dedicated to assisting proactive business owners build profitable, sustainable businesses through results oriented education, coaching and consulting services. Learn more at www.collaboration-llc.com.
To subscribe to our Business Blog for more helpful tools and tips for growing a profitable, sustainable business,
click here. For free downloadable business tools to assist you in growing your business, click here.
Posted by Eric Hubbs on Thu, Sep 03, 2009 @ 11:57 PM
By Michael Gunther, Founder & President of Collaboration Business Growth Specialists
As originally published in The Tolosa Press
I, for one, am inherently a Dreamer - I like to im
agine the growth my business can attain, the services we can develop, the clients we can help, and the financial success we can achieve. Oh, how I can dream!
Dreaming on its own will only take a business so far. To be a successful business owner, you must also be a Doer. And if it wasn't for a past mentor of mine, Mike Rowe, I would probably still just be dreaming.
Mike was a Doer. He completed tasks on his to do list faster than the chip in your computer becomes outdated, and he consistently measured and managed both his performance and the company's results. What was so great about Mike is that he also understood the value of the Dreamer. He believed that if one could master both the Dreamer's goal-oriented, future-focused skill set and the Doer's task-oriented, present-focused abilities, they would improve their performance and accelerate their own growth, as well as that of their company.
I feel fortunate that Mike taught me the value of developing both skills sets and understanding both perspectives. I have grown from it personally and I am able to recognize when business owners are struggling with the Dreamer vs. Doer conflict. I encourage you to assess yourself and establish whether you are a Dreamer or a Doer.
A Dreamer always expects that their ideas and visions for their business will manifest into reality. To solve issues, they tend to think big picture. They often miss the issues or challenges that need to be dealt with today in order to move their company forward. They get frustrated when their dreams aren't achieved or are way-laid, because for them their vision is so clear.
A Doer focuses on the here-and-now tasks and often ends up somewhere other than where they had hoped for. To solve issues, they focus more on "doing things right" than "doing the right things." They fail to consider whether their tasks are leading them in the right direction, and are often disappointed when they don't achieve their goals even though they are working so hard.
Which are you, a Dreamer or a Doer? By evaluating your skills and perspectives you can determine how to enhance your own performance by developing your own personal skill sets, and to enhance your company's performance by surrounding yourself with individuals who offer different skills and perspectives.
At Collaboration, we purposely balance our team with individuals who offer a diverse set of skills and perspectives. This ensures we are not blindsided by reality or miss opportunities because we are not looking at the whole picture. I personally have worked to develop skills in areas that are not my natural strengths, which in turn has improved my leadership and management abilities. Thanks to Mike Rowe taking the time to educate me on this understanding of the Dreamer and the Doer, our organization is strong with both skill sets.
The Bottom Line
By evaluating whether you are a Dreamer or a Doer, improving on your weaknesses, and surrounding yourself with individuals who will compliment your skills and perspectives, you will be able to improve your personal performance and accelerate your company's growth.
There are many behavior assessment tools on the market to assist you in determining your style such: WorkTraitsTM, Myers-Briggs Type IndicatorTM (MBTI), DISC® Profile, and 16PF®.
Michael Gunther is Founder and President of Collaboration, LLC, a team of highly skilled business professionals who are dedicated to assisting proactive business owners build profitable, sustainable businesses through results oriented education, coaching and consulting services. Learn more at www.collaboration-llc.com.
To subscribe to our Business Blog for more helpful tools and tips for growing a profitable, sustainable business, click here.
For free downloadable business tools to assist you in growing your business, click here.