Why your business needs a succession plan
August 18, 2010
THERE’S AN ELEPHANT IN THE ROOM THAT NO -ONE’S TALKING ABOUT
The average man now lives until age 78 and women live an average 83 years*. About half of all Australians aged over 30 can, at some time, expect to get sick or injured to the point that they can no longer run their businesses.
Planning for the future is put in the too-hard basket by many business owners caught up in the day-to-day running of the business. What little time they do have to work on the business (rather than in it) is spent drumming up ways to generate higher profits, manage cash flow and reach new customers.
It is important to look ahead, think and plan about the future. So crucial is succession planning to the future that highly successful entrepreneurs start working on a succession plan the first day of business (if not earlier).
Whether you’ve brought a business or started one from scratch, what you plan to do with the business and when should be thought about and documented. Do you want to sell the business, or is it your retirement fund ? Do you want to hand it down as a family business? As a business owner don’t you owe yourself , your dream and the people associated with your business the respect to have a plan in place that tells staff, family members or partners what to do if you can no longer come to work due to death, accident or illness.
Every activity undertaken in your business should be clearly documented so anyone reading it knows exactly what they should be doing to ensure the business carries on as usual. This means customers can expect the same impressive experience they’re used to, profits aren’t likely to dip, and anyone associated with the business can carry on as normal with the same level of trust they have always had.
94% of small business owners don’t have a documented succession plan at all.
Source: Cameron Research Group, The Australian Small Business Market for Financial Services: 2006
If you make the effort now you will become part of a such small minority of business owners that you cannot imagine the competitive advantage at sale or handover time. When my husband and I sold our business earlier this year our ability to attract a quality well priced offer in under three weeks had a lot to do with the fact that we had systemised the business so that anyone could sit in the ‘chair’.
Succession plans are also vital if you plan to rely on the ongoing income from the business to fund your retirement. A solid plan means very proficient management of the business going forward and you can rest assured that any family members who rely on income generated by the business will be well looked after.
A good succession plan will minimise the disruption to the business while a new leader takes over, regardless of the circumstances. It will also drastically reduce the stress on family members and staff – your position is filled in an orderly, efficient manner with no surprises. A drama-free succession which ensures there is little impact on operations or profits will also serve to maximise the value of the business - creditors in particular like to know their investment is well managed.
Whether you plan to sell all or part of your business or hand it on, a succession plan enables you to work towards implementing and refining systems and processes to the point that the business can run just as well without you as it did with you.
*Australian Institute of Health and Welfare
MORE GREAT BLOG POSTS BY JULIE WISE
- Grab a coffee, take time to pause and reflect on FY10 – 01 July 2010
- Unleash The Plan In Your Head
- Customer Service Tip #1 – Hug your customers!
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Julie Wise - The SilverOwl
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| Email: | julie@thesilverowl.com.au |
| Website: | www.thesilverowl.com.au |
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| LinkedIn: | au.linkedin.com/in/juliewise |
| Member Profile: | See Julie’s Member Profile |
Asking the *Right* Questions to Get the *Right* Answers
August 16, 2010
By Cat Matson, Alito
We ask and answer questions all day, every day. “How are you?” “How was your weekend?” “How’s business going?”
Most of these questions call for superficial, polite answers – “Well thanks”; “Great, how was yours?” and my favourite “Really busy”. 
Different types of questions, of course, need to be asked if we’re going to get meaningful answers. Women have long learned NOT to ask ‘What are you thinking?’ of their men if they want an insight into their mind … but have we learned to ask the ‘right’ questions of ourselves when it comes to our business?
Performance questions are essential to ask on a regular basis:
- What was our revenue this period?
- What was our profit?
- What was our return on time, effort and financial investments?
- What are the trends?
And then to maximise the power of those questions, you need to ask:
- Is that good enough?
- If yes, how do we maintain or improve that performance?
- If not, what needs to happen differently?
- How do we do it differently?
It’s also useful to ask personal effectiveness questions:
- What will I do more of?
- What will I do less of?
- What will I stop doing?
It’s also important to have the right questions asked of you by other people. One of the most valuable aspects of working with a thoughtful business advisor, mentor or colleague is the insights gained from answering the ‘right’ questions. These are the questions that go beyond the transactional ‘what, where and when’ but push through questions of ‘why, how and what if?’
I’m curious … what is the best business question you’ve ever answered? What insights did you gain, and why was it such a potent question?
MORE GREAT POSTS BY CAT MATSON
- What Every Business Plan Should Have (But Most are Missing)
- Half-Time Address
- Can a Mumpreneur Really Crush It? 5 Tips to Myself.
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Cat Matson - Alito
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| Phone: | 07 3289 7055 |
| Email: | cat@alito.com.au |
| Website: | www.alito.com.au |
| Twitter: | www.twitter.com/catmatson |
| Facebook: | www.facebook.com/AlitoFusion |
| LinkedIn: | www.linkedin.com/in/CatMatson |
| Blog: | www.alito.com.au/blog |
| Member Profile: | See Cat’s Member Profile |
The Business of Busyness
August 13, 2010
By Alycia Edgar, Coastal Accounting Services
How do you keep track of your projects and tasks? How do you get to the end of your day and make sure that you have accomplished your goals for the day? How do you make sure you haven’t been fluffing around being busy but not accomplishing anything? It’s so easy to get stuck in the business of busyness, doing those tasks that are ultimately not important.
Brian Tracey introduced us to the urgent vs important matrix.
From this matrix, you can see that our number 1 priorities should be urgent and important tasks. These are tasks that can have serious consequences if not completed.
Interruptions, emails and the like that appear to be pressing, although urgent, are not that important in driving your business forward as shown in Sector III in the matrix. This is the big busyness sector, when you can appear to be super busy but not really accomplish much. You know this sector, you’ve been there before. I know I have. How do we stop? Delegate.
Sector IV in the matrix relates to all those tasks that are neither urgent nor important, so you shouldn’t be doing them. Get rid of them all together. They are not helping you focus on your goals.
Sector II is not urgent but important. This is the area where business growth occurs and you make time to work on your business. This is where you can truly start to leverage your efforts. Time spent here has a tremendous impact on your business in the long term.
So what should be your focus? Definitely the urgent and important tasks as they have serious consequences attached if not completed. Then, you need to make sure you schedule time to work on the important but not urgent tasks. They drive the business forward and assist you in achieving your goals.
Anything that doesn’t fall into the above two areas should be deferred, delegated or dumped entirely. Rid yourself of the unnecessary tasks that do nothing to fulfill you or your business.
How can you do this? Brian Tracy suggests asking these questions regularly:
- What are my highest value activities? What are the things that contribute the greatest value to my work?
- What is the most valuable use of my time right now?
As a business owner who is constantly fighting the “busyness” disease, I have found the questions above and the matrix very useful in keeping me real and on track. I am fine-tuning my delegation skills, eliminating that unimportant stuff and focusing on the growth aspects of my business. Am I seeing the rewards from this focus? Absolutely!
So tell me what are you doing to keep focused on the important aspects of your business. Have you used any of the tools above? Or do you have other tools you have used to maintain that laser focus?
MORE GREAT POSTS BY ALYCIA EDGAR
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Alycia Edgar - Coastal Accounting Services
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| Phone: | 0403 983 529 |
| Email: | alycia@coastalaccounting.com.au |
| Twitter: | www.twitter.com/alyciaedgar |
| Blog: | www.numbersarelife.com |
| Member Profile: | See Alycia’s Member Profile |
Preparing For the “Real World” of Working
August 6, 2010
By Laura Thomas, Intern at Australian Businesswomen’s Network
If you would have asked me a year ago where I would be during my summer break 2010 (Northern Hemisphere summer is June – September), there’s absolutely no way I would have answered ‘Australia’. I have been fortunate enough to participate in a ten-week international internship since June with the Australian Businesswomen’s Network.
I always knew I wanted to travel abroad in college, so I figured, ‘What better time than now?’ I am a senior business management/financial management major from the United States, and I will be graduating in December. Basically, it was now or never!
I have already reaped so many of the rewards from participating in an international internship (and I still have two weeks with the company). For starters, I am working at a smaller organization. As opposed to working at a larger corporation, the ABN gives me meaningful work that directly affects the company.
A few of the tasks I’ve participated in include:
- Proofreading and editing blog posts, eNewsletters and email announcements before they are sent to the ABN community.
- Learning and using the program Hootsuite, a website that manages social media. Through this website, I send ‘tweets’ to the ABN Facebook, Twitter and LinkedIn pages.
- Leading the Businesswomen’s Hall of Fame update project. I researched contact details for the past 150 inductees, contacted those I could find and organised the information as they responded. This project gave me a chance to work with the other interns in a team setting.
The opportunity to strengthen my transitional skills is another huge advantage I’ve acquired from working at the Australian Businesswomen’s Network. In the not-so-far-away future, I will be out in the ‘real world’ looking for a job. The skills I’ve accommodated from this internship will be evident when glancing at my resume, especially if I get an interview!
Skills I have strengthened through the ABN include:
- Communication – written, verbal and nonverbal
- Leadership
- Office
- Planning/Time Management
- Technological/Social Networking
Every year, the ABN takes in international interns from the United States and Hong Kong. Li Lilly Kar Wan (Lilly) was one of five interns at the ABN during summer break 2010. Lilly is a recently graduated marketing major from Hong Kong, who decided to conduct an internship in Australia before starting a graduate program in the UK.
When I asked Lilly if she has been enjoying her internship at the Australian Businesswomen’s Network, she replied:
“Spending my two months this year being an intern at the ABN is absolutely one of the most memorable moments in my life. The internship has always been rewarding and fruitful, as it has enriched my mind and broadened my horizons. Above all, I get to experience a very different working culture as I am from Hong Kong.
My job tasks in the ABN are diverse and varied. From every single one of them, I can immerse myself into different roles, while learning different skills and techniques to help build my future career path. I treasure these learning opportunities a lot, and hopefully they will be the bridge that transforms me from a student to a professional.
People at the ABN are truly nice and helpful. The atmosphere is always relaxing and enjoyable. This adds up to make the whole internship more joyous and memorable for me. All in all, I really love this country, this company and everybody I have met during this trip!”
I fully agree with Lilly, so a big THANK YOU goes out to the Australian Businesswomen’s Network for taking me in and helping me grow.
What Every Business Plan Should Have (But Most are Missing)
July 23, 2010
By Cat Matson, Alito
I am often asked why business owners have a business plan. Why spend time planning rather than ‘just getting on with the business?’ My answer is simple …
“So you know where you’re going, and you know how you’re going to get there.”
But I’m also a big one for creating a plan that works for you. The planning process I swear by may not suit your personality type or your business context. So rather than get ‘caught-up’ in the right ‘format’ of a business plan, today I want to outline the key elements of the business plan.
1. The Business Model – how do we actually make money?
Obvious? Maybe, but I so often see business owners struggling to make money, simply because they never clarified how they are going to make it. They focus on ‘doing their thing’, but forget that somewhere along the line they need to get paid.
The business model conversation is bigger than just ‘selling x-product or y-service’. The business model is how you reach your market, convince them you’re worth talking to and ultimately why they should buy your wares. It’s about exchange – what do you receive in exchange for what you give? This is also bigger than the ‘marketing function’ of the business, which is where most people put their focus. This business-model conversation is actually about brand, strategy & operations combined in a synergistic, leveraged flow. It is the exploring, designing & building the business model that helps you discover the viability of your business.
2. Realistic Action Plans – what are we going to do in the immediate future to get closer to our targets?
3. A context-check, or what I call ‘life-sandbox’, is extremely important for solo & micro business owners, but is often missed.
This life-sandbox is the reality of your life into which your business fits & exists. Most planning processes address the business in isolation to the owners’ lives, so we set lofty goals that are incongruent with our life-reality.
4. Finally, a visible, meaningful scoreboard.
It would be incredibly boring to watch a game of football if you didn’t know the score, yet business owners do this all the time. Many business owners only look to the financial scorecard. That’s not always enough. Your business plan needs to drive the scoreboard, which in turn drives performance.
In terms of format, I’ve been using different ‘one-page-plan’ formats for years and am a big advocate for keeping things simple. However, there are times when a more traditional format is valuable. It’s your call. Just make sure you have some kind of plan in place and that the essential ‘inclusions’ are covered. A business plan that doesn’t address the essentials is a waste of time.
MORE GREAT POSTS BY CAT MATSON
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Cat Matson - Alito
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| Phone: | 07 3289 7055 |
| Email: | cat@alito.com.au |
| Website: | www.alito.com.au |
| Twitter: | www.twitter.com/catmatson |
| Facebook: | www.facebook.com/AlitoFusion |
| LinkedIn: | www.linkedin.com/in/CatMatson |
| Blog: | www.alito.com.au/blog |
| Member Profile: | See Cat’s Member Profile |
Time Billing vs Value Billing
July 22, 2010
By Alycia Edgar, Coastal Accounting Services
As service professionals, most of us are tracking our time, whether that is for the purpose of charging clients per billable hour or measuring our time spent on projects for which a client is paying. How can we satisfy our need to track our time for “billable” purposes with the requirement to satisfy the needs of our clients?
The need to track our time so we are charging accordingly is an obvious one, but it can backfire in the eyes of our clients. Take accounting firms as a prime example. The majority of them track their time in 6 minute increments and bill clients accordingly (as most lawyers do), and this is where the problem can occur. Clients become reluctant to call their accountant or lawyer as they know that the “clock” starts as soon as they say hello. I’m not saying professionals shouldn’t charge for their time, they most definitely should (otherwise I wouldn’t be making a living at all). But when that charging impedes you from delivering your best service to your clients, surely something has to change.
From this dilemma, new models have developed where clients are given a yearly proposal fee that is paid monthly, a little like a retainer type agreement, which clearly sets out the scope of tasks that are to be included within that fee and can include unlimited phone calls and emails. Unlimited, I can hear you all in shock now. How on earth would you handle that. Surely some will abuse that? Yes, the minority probably will, but the majority will probably not use it much at all. The perception that they can call or email you at anytime knowing that you will answer them and it’s within their existing fee is comforting to a client. They feel supported all the time just knowing they can do that. They are not likely to make their own “uninformed” decisions for fear of incurring more fees.
Rather than thinking about billing your time to clients, how about billing value?
Does this mean you stop tracking time? No, as you need to be able to measure the time you are spending against the budget (ie the proposal fee you set) to make sure that that figure was indeed on the mark. From this, you can determine what the true hourly rate for that client was at the end of each year. Then, adjust accordingly for next year’s proposal and/or improve your own systems and those of your clients to make sure the tasks are not taking as long.
Rather than thinking about billing your time to clients, how about billing value? The hard part lays in determining how that value is expressed in $ terms. Start at a base, tweak it and just give it a go. You’d be surprised the change that will occur in the relationship with your clients. Is this hard to introduce with existing pay by the hour clients? Yes, but you can choose a transition time and phase it in gradually. Whereas, all new clients now start with your business under the Value Billing system.
Do you have a Value Billing System? Would you implement one?
MORE GREAT POSTS BY ALYCIA EDGAR
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Alycia Edgar - Coastal Accounting Services
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| Phone: | 0403 983 529 |
| Email: | alycia@coastalaccounting.com.au |
| Twitter: | www.twitter.com/alyciaedgar |
| Blog: | www.numbersarelife.com |
| Member Profile: | See Alycia’s Member Profile |
Keep the Passion And Stay Strong On Price: Reflections from NSBS 2010
July 21, 2010
By Anne Sorensen, Marketing Is Us
Small business owners tend to be passionate. With our businesses forming such a significant part of our lives, it wasn’t surprising that passion was a recurring theme at July’s National Small Business Summit held in Brisbane.
Opened by the passionate Minister of Small Business, The Hon Dr. Craig Emerson, MP, the Summit was a jammed packed day and evening of learning, inspiration and networking.
In addition to the pollies (the Hon Leader of the Opposition presented an energetic address which aimed to be ‘non political, non partisan!’), the morning commenced with a conversation with Australia’s top public servants about the regulations that affect small business. Included on the panel was ASIC Chairman, Tony D’Aloisio and the Australian Tax Commissioner, Michael D’Ascenzo. This was the second time I’d heard Michael speak, and he continues to strike me as a very marketing oriented Commissioner with his focus upon putting the “taxpayers and the community at the heart of the ATO’s thinking. “
Ben White, Director of Optus Strategy and Corporate Development, highlighted the real value of the national broadband network. However, for me the morning’s highlight was the Kochie’s Business Builders’ (KBB) Panel Session ‘Red Hot Sales, Marketing and Social Media Strategies‘. Passion abounded.
Some of the great insights from the panelists included those from Dell’s US social media executive, Richard Binhammer, who said, “Share the passion for your business and connect. The reddest, hottest thing about social media is that in fact it allows you to connect more strongly, in a real way.”
Richard encouraged businesses to share the good news stories.
Telstra Business Award winning entrepreneur Valerie Khoo, founder of the Sydney Writers’ Centre, is passionate about leveraging technology to build business. She urged businesses to collect contact information via their websites, then communicate with customers in the way promised. Valerie also encouraged businesses to consider social media (particularly blogs and Facebook) to engage with customers. She advised businesses to not be deterred by the time required for this medium. “You’re in total control of how much time you spend,” Valerie lectured.
The afternoon featured some streamed workshops.
In the ‘Small is Beautiful‘ session, Robert Gerrish, founder of Flying Solo – Australia’s micro business community with more than 25,000 members, discussed the findings of ‘Understanding Micro Business’, a comprehensive survey of over 1,300 business owners and stated, “The more we work the happier we are.”
In the same session, small business consultant and KBB marketing guru, Linda Hailey reminded, “Passion is what makes you beautiful.”
The ‘Truly Tech Savvy’ was one of the most popular sessions, highlighting the increased consciousness amongst business owners of the opportunities created by technology.
The workshop ‘Cash is Still King’ explored cash flow management techniques small businesses can use to drive revenue and improve debtor management. Angela McDonald, Director of Optimum Recoveries, spoke about the value of obtaining credit checks for clients and your own business, whilst Chartered Accountant, Susan Milicevic of Aspire Consulting, emphasized the importance of having a cash flow plan.
The program’s other significant recurring theme was price.
Julia Bickerstaff, Owner of The Business Bakery and a KBB finance expert, urged businesses to price strongly and confidently. “You can’t win by being cheap,” she said. “Talk price early, and talk price often. Position away from price; be different, special, unique. Make yourself different.”
Linda Hailey agreed, “Think positive. Don’t chase the volume, chase the value. Don’t discount – value add.”
Michael Derin, Managing Director of Azure Group, summed up, “Small business is about the customer. Surround yourself with clients who appreciate and will pay you for what you do. Value yourself as a small business owner.”
According to Mike O’Hagen, Founder and Owner of Mini Movers – a company with more than 500 employees and $30 million annual turnover, the outlook for small business looks good. “In 30 years of business, there have never been so many opportunities,” commented Mike.
The Summit concluded with a dinner that featured several inspirational small business success stories. My favourites included Leanne Faulkner, Founder of Billie Goat Soap – a business that after only running five years has been named as Supplier of the Year to Myer. A beautifully produced and packaged product – you can feel the passion in its making.
Also inspiring was John Sharpe, Managing Director of Riverlife – an innovative company based in Brisbane, who was dedicated to providing “dynamic, fun and heart pumping adventure experiences” that embrace Brisbane’s culture and history.
Roseanne Anderson, Founder of success story Cyber Hair, reiterated the now familiar theme, “My business is my passion.”
We departed with new contacts, knowledge, inspiration and renewed passion (matched only perhaps by David Koch’s amazing energy still evident at 11pm after his 3 am start!).
Thanks COSBOA, PinStripe Media and all sponsors and supporters for a great event.
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Anne Sorensen - Marketing Is Us
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| Email: | anne@marketingisus.com.au |
| Website: | www.marketingisus.com.au |
| Facebook: | www.facebook.com/MarketingIsUsFans |
| Twitter: | www.twitter.com/marketingisus |
| Blog: | www.marketingisus.com.au/blog |
| LinkedIn: | www.linkedin.com/in/annesorensen |
| Member Profile: | See Anne’s Member Profile |
Six Characteristics of Success-oriented Small Business Owners
July 14, 2010
By Susan McGrath
Are you highly motivated, caring and curious? If so, you are part of a special breed of success-oriented small business owners, according to Mark D Wolf, director of the New York based Guardian Life Small Business Research Institute.
And if you effectively balance your personal and business goals, take advantage of others’ expertise and continually seek to learn the best practices exhibited by peer companies, you are even more likely to achieve business success.
The Guardian Institute surveyed owners of over 1,100 small business owners in its recent study “The Guardian Life Index.” It identified six dimensions of owners who projected revenue increases and business expansion, even as the recession peaked in the US.
According to the study, success-oriented small business owners are:
- Collaborative – they are able to build strong personal relationships, delegate effectively and are committed to creating opportunities for others.
- Self-fulfilled – they place a high value on the personal fulfillment and gratification that they gain from their business.
- Future-focused – they plan for both the short and long-term future and are focused on cash flow.
- Curious – they are open to learning how others run their business and actively seek best practice insights regarding management, business innovation, prospecting and employee attraction, motivation and retention.
- Tech-savvy – technology is a key point of leverage for success-oriented small business owners. They intensively value their company’s website and are significantly more likely to rely on technology for business effectiveness and efficiency.
- Action oriented – success-oriented small business owners are more proactive in taking initiative to build their business. They are more committed than others to taking their business to the next level, differentiating themselves from their competitors and having an exit strategy. They also see adversity as a means to help them move forward.
According to Patricia Green, PhD, the special academic advisor to the Guardian Institute, successful SME owners are lifelong learners, and the most valuable point of the six dimensions is that they can all be learned.
More information about the characteristics of successful small business owners is available from the Guardian Life Small Business Research Institute.
MORE GREAT POSTS BY SUSAN MCGRATH:
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Susan Wareham McGrath - McGrath Career Management
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| Email: | susan@susanwareham.com |
| Website: | www.susanwareham.com |
| Twitter: | www.twitter.com/Susan_McGrath |
| Blog: | www.susanwareham.com |
| LinkedIn: | au.linkedin.com/in/susanwmcgrath |
| Member Profile: | See Susan’s Member Profile |
Feed Your Business: 4 Delicious Lessons from Tuscan Food
July 13, 2010
By Nerida Gill, Admin Bandit
Where do you go for holidays when you already live in one of the world’s most divine locations?
Recently in Tuscany on the first leg of a dreamy overseas trip, I couldn’t help but ask this question.
How could I not?
This tiny region in central Italy is less than a third of Tasmania’s size, yet overflows with medieval villages, olive groves and vineyards. What’s more, it’s the birthplace to a stack of those names everyone knows — Michelangelo, Leonardo da Vinci, Galileo, Dante, Botticelli … need I go on?
As for culinary delights, I had the idea for an article that linked Tuscan staples to small business while eating lunch on the terrace of a rustic country villa. Sigh … for you, dear reader, I over-indulged in each of the following four:
Pecorino Toscano
Tuscans are proud of this sheep’s milk cheese, which is eaten at any of three stages — fresh, medium-aged or mature. From soft and delicate to firm and sharp, the cheese changes with time, but no stage is considered superior. Each one is simply different.
The same goes for your business. Nothing in our world is static, so understand that the flavour and character of what you do will also change. It’s not better or worse. The point is to accept change, and use it to grow and refine your business.
Olive Oil
Known as “liquid gold”, Tuscan olive oil is said to be the best, and considering every single olive is picked by hand, that’s no mean feat (especially when you realise it takes about 1,250 olives to make a litre!).
In our mechanised world, people long for the personal touch, so let your humanity show. It takes time to hand-write “thank you” notes, have a meeting over coffee, or engage in real conversations with your customers, but the reward is a better quality product or service and a more enjoyable experience for everyone involved.
Chianti
One of the best known Italian wines, chianti is a lush, fruity red produced only in Tuscany. Its high acid content makes it an incredibly flexible drop that can be paired with many foods.
The obvious business parallel is to be flexible, because you never know what challenges, changes and chances lie ahead.
Acid, however, has strange properties. The same thing that ensures flexibility also purifies and preserves. Think of a rusted metal garden bench, for example, acid removes the rust and, thus, restores beauty and usefulness.
Does anything in your business need refurbishing?
Wild Boar
Wild boar, or cinghiale, takes me straight back to childhood (I immediately picture Asterix and Obelix biffing Roman legionaries and then feasting on whole, spit-roasted pigs)!
Unfortunately, cooking wild boar isn’t that easy in real life, at least in Tuscany (from where many of those above-mentioned victims probably hailed).
Wild boar may be delicious, but it requires complicated preparation, a long list of ingredients and slow cooking to get the most tender results.
The same could be said of starting a business. Like wild boars, the forest is full of raw ideas, but it takes planning and patience to realise their full potential.
Think of something you can do to add more flavour to your business; revisit your business plan, enroll in a short course or access the federal government’s business portal.
MORE GREAT POSTS BY NERIDA GILL
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Nerida Gill - Admin BanditNerida Gill is the creator of Admin Bandit, a web-based accounting package designed specifically to make keeping the books easy for volunteer treasurers in community groups. After winning numerous business awards, Admin Bandit is in a growth phase after recently attracting external investment.
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Work Smarter, Not Harder: How to Achieve Balance
July 6, 2010
By Nerida Gill, Admin Bandit
Small business owners are suckers for punishment … at least that’s what I’ve decided after reading a few statistics on the ABS website.
Did you know that almost half of us work at least an extra day a week more than “regular” people? In fact, a crazy 20% cram up to two weeks worth or work into just one tiny week.
That’s serious double duty and, to be honest, I’m as guilty as the next person.
Photo: Tim Ellis Photography
The problem is, like the majority of small business owners in Australia, I don’t directly employ staff, which means there’s no one to share the workload — put simply, if there’s a job to do, I’m the only one. Plus, almost 7 in 10 of us run our businesses from home, which means our work is always on hand. I don’t know about you, but I’m often at my computer well after 11pm.
This year, however, after having time and space to reflect on a few things during my recent holiday, one of my goals is to seek balance. I know I can’t survive long-term in overdrive mode, so I’ve been looking for smarter ways to keep growing my business while taking better care of myself.
Manage Your Time
Being busy doesn’t always mean you’re achieving anything. In fact, sometimes it’s simply a sign that you need better time management skills. What can you do to get your daily tasks done in less time?
- Write a “to-do” list everyday and prioritise the most important items. It’s okay if you don’t get them all done. Realistically, you can do no more than five significant things each day.
- According to Pareto’s Principle, 80% of results come from just 20% of your effort; so determine what you really need to do and forget the extraneous stuff.
- Beat procrastination. As Angela Booth says in Better Time Management in 21 Days, no task is so onerous that you can’t do it for just 20 minutes. It’s amazing how much you can achieve in short blocks.
- Play to your strengths. Delegate the tasks that can be done by other people (dare I say it, perhaps more efficiently than you).
Get Organised
Studies show being organised saves you up to an hour a day. What’s more, it promotes creativity and helps keep stress at bay, so why not try one of these this week:
- Spring clean your office. You’ll see huge results from even 10 minutes a day.
- Get a big wall calendar (the kind that allows you to see the whole year at a glance), and use it to mark important dates, set deadlines and make goals.
- Schedule a regular time to do your accounts, and reward yourself when you keep it.
Keep Work and Home Separate
When you run a business from home, the lines between work and leisure blur all too easily and you run the risk of working too hard or not hard enough. Find your equilibrium by creating physical and psychological boundaries.
- Dress every day as if you are going to a meeting. Track pants and pyjamas may be comfy, but they’ll make you feel unprofessional and unmotivated.
- Don’t share your workspace and equipment. Have a desk, computer, email address and phone line that are only used for work.
- Turn your computer and mobile phone off at a set time each day so you won’t be tempted to answer just one more email or call.
MORE GREAT POSTS BY NERIDA GILL
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Nerida Gill - Admin BanditNerida Gill is the creator of Admin Bandit, a web-based accounting package designed specifically to make keeping the books easy for volunteer treasurers in community groups. After winning numerous business awards, Admin Bandit is in a growth phase after recently attracting external investment.
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